**Title: Finfluencer Abhishek Kar Admits to Violating SEBI Rules, Revealing a Troubling Trend**
**Author: Asha Menon**
**Published Date: September 02, 2023, 08:15 AM IST**
In a shocking disclosure, Abhishek Kar, a prominent figure in the world of financial influencers ("finfluencers"), has acknowledged employing deceptive tactics by disguising "buy" and "sell" recommendations as 'B' and 'S'. This admission has brought to light a disconcerting pattern where unregistered individuals offer investment advice to lure subscribers to their trading courses, all while violating the regulations set by the Securities and Exchange Board of India (SEBI).
Abhishek Kar, with a substantial following exceeding 1.5 million on various social media platforms, is now under intense scrutiny. Despite being a sought-after guest speaker at esteemed institutions such as the Indian Institute of Technology (IIT) and the Institute of Chartered Accountants of India (ICAI), it appears that Kar has utilized his influence to promote his trading courses by providing investment advice.
In an audio recording that has circulated widely online, Kar can be heard confessing to using coded language ('B' and 'S') to convey "buy" and "sell" recommendations. This revelation is particularly concerning as Kar lacks registration as a financial advisor, thus making his act a clear violation of SEBI norms.
During a conversation with Shreyas Bandi, an experienced trader known for debunking financial myths, Kar attempted to rationalize his actions by asserting, "I was never writing 'buy' or 'sell' on my Telegram channels, only giving 'B' or 'S,' but yes, technically it means more or less the same."
This revelation has triggered an online campaign aimed at holding trader-trainers like Abhishek Kar accountable for their practices. Trader-trainers have frequently come under fire for enticing individuals with the promise of substantial trading earnings, often downplaying the associated risks. Consequently, various platforms have urged trader-trainers to provide verified profit-and-loss statements as evidence of their claims, a request that has faced resistance within the industry.
The conversation between Bandi and Kar sheds light on the illicit practice of unregistered individuals providing investment advice, feeding into the booming "training" business. Kar admitted that he initially initiated his Telegram group by sharing charts but later transitioned to "observational trades" to attract more subscribers.
"Observational trades," a term commonly used in the industry, refer to real-time trades executed by a trader-trainer, which are then replicated by their channel subscribers. Despite trader-trainers defending this practice as an exercise in "observation" and learning, it is evident that many subscribers perceive these actions as investment advice and replicate the trades.
Kar went on to reveal that he enticed subscribers to his Telegram channels, disguised as educational platforms, through three methods. One strategy involved selectively highlighting profitable trading days, conducting analyses of these trades, and then inviting viewers to join the premium Telegram group for access to similar insights and trading recommendations.
The term "premium group" is a phrase frequently used by trader-trainers to denote Telegram groups offering paid access to stock advice and trading recommendations.
In the conversation, Kar divulged his collaboration with Rigi, a content creator platform, where he integrated his training and mentoring programs, garnering significant attention. He explained that individuals who enrolled in a mentoring program gained access to training videos, a move perceived as receiving both training and personalized mentoring.
Market insiders have pointed out that mentoring programs typically go beyond elucidating general stock market concepts and allow student-subscribers to follow the live trades of the trader-trainer, effectively providing investment advice.
On May 29, Rigi made it mandatory for any influencer selling content related to the securities market to register with SEBI as either a research analyst or an investment advisor. Responding to inquiries from Moneycontrol, Rigi clarified that prior to this announcement, Abhishek Kar utilized a Telegram channel as an extension of his educational courses offered through Rigi. They emphasized that the content within Kar's Telegram channel was his sole responsibility, with Rigi serving as a facilitating platform devoid of control or oversight over the content.
Subsequent to the announcement, Rigi restricted services related to Kar's Telegram channel to align with their updated guidelines aimed at upholding platform integrity. However, Rigi maintains that it operates within the IT/ITeS sector and does not fall directly under SEBI's regulatory purview. Their primary role revolves around providing tools for content creators to engage with and monetize their audience.
This revelation has prompted crucial questions about the regulation and transparency of financial influencers, underscoring the pressing need for accountability within the financial advice industry. It serves as a reminder to investors and traders to meticulously vet the qualifications and credibility of individuals offering investment advice, ensuring informed decisions in the realm of financial markets.
**Author: Asha Menon**
**Published Date: September 02, 2023, 08:15 AM IST**
In a shocking disclosure, Abhishek Kar, a prominent figure in the world of financial influencers ("finfluencers"), has acknowledged employing deceptive tactics by disguising "buy" and "sell" recommendations as 'B' and 'S'. This admission has brought to light a disconcerting pattern where unregistered individuals offer investment advice to lure subscribers to their trading courses, all while violating the regulations set by the Securities and Exchange Board of India (SEBI).
Abhishek Kar, with a substantial following exceeding 1.5 million on various social media platforms, is now under intense scrutiny. Despite being a sought-after guest speaker at esteemed institutions such as the Indian Institute of Technology (IIT) and the Institute of Chartered Accountants of India (ICAI), it appears that Kar has utilized his influence to promote his trading courses by providing investment advice.
In an audio recording that has circulated widely online, Kar can be heard confessing to using coded language ('B' and 'S') to convey "buy" and "sell" recommendations. This revelation is particularly concerning as Kar lacks registration as a financial advisor, thus making his act a clear violation of SEBI norms.
During a conversation with Shreyas Bandi, an experienced trader known for debunking financial myths, Kar attempted to rationalize his actions by asserting, "I was never writing 'buy' or 'sell' on my Telegram channels, only giving 'B' or 'S,' but yes, technically it means more or less the same."
This revelation has triggered an online campaign aimed at holding trader-trainers like Abhishek Kar accountable for their practices. Trader-trainers have frequently come under fire for enticing individuals with the promise of substantial trading earnings, often downplaying the associated risks. Consequently, various platforms have urged trader-trainers to provide verified profit-and-loss statements as evidence of their claims, a request that has faced resistance within the industry.
The conversation between Bandi and Kar sheds light on the illicit practice of unregistered individuals providing investment advice, feeding into the booming "training" business. Kar admitted that he initially initiated his Telegram group by sharing charts but later transitioned to "observational trades" to attract more subscribers.
"Observational trades," a term commonly used in the industry, refer to real-time trades executed by a trader-trainer, which are then replicated by their channel subscribers. Despite trader-trainers defending this practice as an exercise in "observation" and learning, it is evident that many subscribers perceive these actions as investment advice and replicate the trades.
Kar went on to reveal that he enticed subscribers to his Telegram channels, disguised as educational platforms, through three methods. One strategy involved selectively highlighting profitable trading days, conducting analyses of these trades, and then inviting viewers to join the premium Telegram group for access to similar insights and trading recommendations.
The term "premium group" is a phrase frequently used by trader-trainers to denote Telegram groups offering paid access to stock advice and trading recommendations.
In the conversation, Kar divulged his collaboration with Rigi, a content creator platform, where he integrated his training and mentoring programs, garnering significant attention. He explained that individuals who enrolled in a mentoring program gained access to training videos, a move perceived as receiving both training and personalized mentoring.
Market insiders have pointed out that mentoring programs typically go beyond elucidating general stock market concepts and allow student-subscribers to follow the live trades of the trader-trainer, effectively providing investment advice.
On May 29, Rigi made it mandatory for any influencer selling content related to the securities market to register with SEBI as either a research analyst or an investment advisor. Responding to inquiries from Moneycontrol, Rigi clarified that prior to this announcement, Abhishek Kar utilized a Telegram channel as an extension of his educational courses offered through Rigi. They emphasized that the content within Kar's Telegram channel was his sole responsibility, with Rigi serving as a facilitating platform devoid of control or oversight over the content.
Subsequent to the announcement, Rigi restricted services related to Kar's Telegram channel to align with their updated guidelines aimed at upholding platform integrity. However, Rigi maintains that it operates within the IT/ITeS sector and does not fall directly under SEBI's regulatory purview. Their primary role revolves around providing tools for content creators to engage with and monetize their audience.
This revelation has prompted crucial questions about the regulation and transparency of financial influencers, underscoring the pressing need for accountability within the financial advice industry. It serves as a reminder to investors and traders to meticulously vet the qualifications and credibility of individuals offering investment advice, ensuring informed decisions in the realm of financial markets.
